If your using OFFSCREENPLAIN surfaces then no. You have to create a separate video memory surface and Blt the system memory surface into it. Remember that an offscreen plain surface in video memory _MUST_ have the same pixel format as the primary surface!
If your using your surfaces as Direct3DIM textures then in DX7 you can have the texture manager automatically move them between system memory and video memory depending on which ones have been used most recently. Create the surface with the TEXTURE and TEXTUREMANAGE caps. Note that textures have stricter size restrictions than offscreen plain surfaces.